Gold fell in London on speculation that a record reached yesterday was overdone and as a technical chart used by some investors signaled they should sell the metal. Platinum, silver and palladium also declined. | |
| Gold had its best start to a year since 1975, reaching all-time ihghs on January 8 and 9, as a jump in oil prices spurred investors to seek a hedge against accelerating inflation. That took gold's 14-day relative strength index to 72 yesterday. A reading above 70 signals prices may decline. |
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| "There is no more mileage in gold," Bernard Sin, chief gold trader at MKS Finance, one of Switzerland's four precious metal refiners, said on Thursday. |
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| "We need a pullback before we can inch forward again." |
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| Gold for immediate delivery fell $1.77, or 0.2 per cent, to $877.04 an ounce as of 9:52 am in London. The metal reached a record $891.70 yesterday, extending a seven-year winning streak. Silver for immediate delivery fell 10 cents, or 0.7 per cent, to $15.59 an ounce. |
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| Platinum for immediate delivery in London declined $7.75, or 0.5 per cent, to $1,546.25 an ounce. It reached a record $1,563.25 yesterday. Palladium fell 75 cents, or 0.2 per cent, to $374.75. |
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